Discounted Gift Card Sales (Discount Tracking):
Accounting for gift card liability is essential for all restaurants.
Discounted gift card sales complicate liability apportionment, particularly among restaurant chain locations. With these discounted sales initiated through retail outlets, third parties, or in other business-to-business sales opportunities, tracing and appropriately allocating the liability can be a convoluted burden.
Paytronix’s ability to track discounts provides exceptional differentiation. We allow you to follow the discount from the time of sale and then monitor redemption throughout the life cycle of the card. In this way, you can accurately report the outstanding net liability across your gift card portfolio. We report both the total and the net balance for ready reference and reconciliation.
Discount tracking is especially crucial for franchised organizations. When a franchisee redeems a card sold at a discount, the franchisee shares the cost of the discount. Money movement between corporate and the franchisee can be calculated net of the discount.
Paytronix enables other advantages involved in managing discounts, including:
- Applying sales discounts in flexible, convenient ways:
- Rule Based. Automatically assign discount percentages for third party retailers at the time of the sale.
- Bulk Discount Guidelines. Assign discounts based on a bulk card sale schedule. Provide discretion yet ensure the discounts conform to company guidelines.
- Manual. Assign discounts manually through Paytronix’s “wallet” adjustments.
- Assigning the discount in proportion to the redemption rate for accurate, on-going balance reporting.
- Tracking gift card balances in gross terms as well as net of discounts balance information.
- Calculating expiration and escheatment net of the sales discount thereby minimizing your liability to state governments.